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Monday Sep 23, 2024
Wednesday, 30 July 2014 00:00 - - {{hitsCtrl.values.hits}}
Q: Why is the Lease Plus Bonus Cash product from Alliance Finance distinctly set apart from other vehicle financing products in the market?
A: Alliance Finance, backed by its rich history and credentials over many decades, has sought to differentiate its positioning through innovation and by meeting the evolving financing needs of customers. More specifically, we have maintained our dignity and not indulged in price wars. Our spirit of innovation drives us to regularly customise products that offer unique benefits and are absolutely transparent in nature.
The newest Lease Plus Bonus Cash product launched in the market clearly promotes the savings habit and financial discipline amongst customers by offering them a handsome gift of bonus cash of they pay their monthly installments in a timely manner for at least 80% of their lease period.
Customers who succeed in this endeavor not only improve their credit worthiness, but they are also eligible for a bonus cash gift of 10% of their lease amount along with the registration book at the end of their facility. When they take the bonus gift into account, they will realise the actual interest rate they have paid eventually is much lower than when they set out. Our aim in launching this product was to place the customer first.
Q: What was the objective behind this unique product?
A: Alliance Finance is a company with a strong triple bottom line focus and is committed to bringing value to ‘People, Planet and Profit’. Therefore, this new product is aligned to our sustainability ethos as its not only promotes the good habit of making timely payments and the savings mindset, but also facilitates customers to improve their creditworthiness, thereby creating happy customers.
We consider it our duty to contribute to nation building through these unique products and services that develop a mindset of financial discipline and adherence to financial agreements entered into by parties. This product is very much in line with our business philosophy and we are confident that customers will recognize this product for the many benefits it offers them.
Q: What were the other considerations for designing such a revolutionary product?
A: The finance industry consists of 56 finance companies and 26 banks, which vie with one another to offer low interest rates to lure customers. As a result of this, customers in the country learn to select finance companies based on low prices rather than on the nature of the product or other more mature parameters. Impulse buying is encouraged by unscrupulous companies. This leads to a market that is immature and under-developed. There is no consideration for creating products and services that develop and grow customers with elements of financial discipline.
Alliance Finance approaches its business in a completely different manner. More importantly, we are morally against offering products that tempt the public with low interest rates that then entrap the poor customers who are unable to meet the payments, thereby burdening them under severe debt. Instead, we ensure that our products are transparent in nature and offer multiple gains to customers. Delivering on our promises is the key driving factor behind all our products and services.
Q: What is the eligibility criteria for the product?
A: This product is being promoted from 14 July to 13 September. All lease and hire purchase applications received during the promotional period for financing of two-wheelers, three-wheelers and four-wheelers with risk rating of A, B or C are eligible to gain the multiple advantages of new product. However, the offer is valid only for three, four and five year tenured facilities only, except in the case of brand new/unregistered four-wheelers, where we could offer a six-year term.
The offer is valid only for customers who are granted the facility under standard interest rates (IRR). Contracts with preferential rates and under special schemes are not eligible for the bonus cash.
Q: Can you please explain how the bonus cash gift element works in this product?
A: An amount equivalent to 10% of the lease facility (from the initially granted facility value) will be paid off back to lessee at the end of the lease period after full settlement of all rentals. The key factor in earning this bonus cash gift is to ensure that as a customer you pay back the monthly rentals on time for at least 80% of the lease period. For example, if the lease facility is for Rs. 300,000 (excluding VAT), the gift will be Rs. 30,000. The gift is not valid for the VAT portion of the facility. Also, seasonal facilities, accidental cases with total loss and early settlements do not qualify for the bonus cash gift.
Q: Any other terms and conditions that customers of the new Lease Plus Bonus Cash need to be aware of?
A: Yes. The crucial condition to earn the bonus cash is that all lease rentals are to be paid in a timely fashion adhering to what we consider as ‘prompt payments,’ where entire lease rentals are paid on or before the due date. If the payments are paid before the grace period of seven days, such payments will also be considered as prompt payments. In case the payment of rentals is delayed for more than seven days but less than 30 days, the customer will still be eligible, provided such delayed numbers of rentals are below 20% of the total number of rentals of the facility.
It is important to note, however, that the offer will not be valid for completed contracts, which includes rental payments delayed for 30 days or more. Moreover, off-setting of cash gift from the last rentals are not allowed. The gift amount will be given after settling overall rentals by the customer. Further, the facilities should be owned by the original lessee and third party contracts will not be eligible for the offer. As far as the pricing and valuation of vehicles is considered we have a pricing structure that can be shared with the customer when he contacts any of our customer touch points.
